New Dawn raises gold production up to 16%

NEW Dawn Mining Corp reported a 16% increase in gold production for the quarter ending September 30, which led to a 17,3% increase in turnover from US$14,05 million to US$16,48 million for the period.
Report by Staff Writer

For the quarter consolidated gold production was 10 256 ounces (9 370 ounces attributable to New Dawn, after adjusting for the minority interests’ share of gold production of Falgold), compared to gold production for the quarter ended September 30, 2011 of 8 814 ounces (8 212 ounces attributable), an increase of 16,4% (a 14,1% rise on an attributable basis).

Consolidated gold sales were US$16,48 million (US$15,073 million attributable), compared to US$14,059 million (US$13,14 million attributable) for the quarter ended Sept 30, 2011, an increase of 17,3% (14.7% increase on an attributable basis).

The company reported record gold production of 37 623 ounces for the year to September, an increase of 41% from last year. It is targeting to increase this 41% to 53 000 ounces.

Revenue from gold sales was US$61,9 million for the year ended September 30, 2012, compared to US$38,3 million for the year.
The company is applying more time and resources to exploration on its various properties.

Falgold needs US$40 million of fresh capital to get its production past the 100 000 ounces annual production, chief executive Ian Saunders said at a recent scheme meeting.

New Dawn, the majority shareholder in the company at 85%, called for the scheme meeting which sought shareholders’ approval for the delisting of Falgold and the subsequent listing of New Dawn. New Dawn would list by way of introduction. Its shares will continue to trade on the Toronto Stock Exchange.

Meanwhile, New Dawn is said to have submitted its indigenisation plans to the Ministry of Youth Development, Indigenisation and Economic Empowerment. Prior to the submission the mining group was one of three mining companies that were yet to comply with the law.

The other two are Duration Gold and Metallon Gold Zimbabwe.

Early this year, New Dawn said its indigenisation plan contained several components which would see the group dispose 36% of its equity in the group. The company has four proposed indigenous investor consortiums which have to receive certification from the National Indigenisation and Economic Empowerment Board as qualified indigenous investors.

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